Neetish Sarda, Managing Director of Smartworks, told ET that Rs 114 crore out of the Rs 445 crore will be used to retire high-cost debt, while the balance will be used for expansion.
Smartworks will hit the capital markets on July 10 with its initial public offering (IPO).
The offer will close on July 14.
Following the filing of its DRHP on August 14, 2024, certain complaints were made against Smartworks and members of its promoter group.
Smartworks has denied all allegations and responded to the complaints.As disclosed in the RHP, there were allegations that multiple companies linked to Ghanshyam Sarda, a member of the promoter group, were under investigation by the CBI, SEBI, Enforcement Directorate, and the Income Tax department.On the alleged investigation by the Income Tax department, Smartworks stated that the department has completed its assessment of the income tax returns filed by the company up to Fiscal 2022.
“Our company has challenged the assessment of its income tax return filed for Fiscal 2019–2020 by the Income Tax department before the relevant forum. There are no ongoing investigations by the Income Tax department, and it has not opened files for scrutiny of our company, promoters, or entities forming part of the promoter group in the last seven years. Further, there are no ongoing investigations wherein a demand of Rs 200 crore has been made on our company,” the RHP states.
In December last year, Smartworks received approval from the Securities and Exchange Board of India (SEBI) to launch its IPO.
As of June 30, the company has a total footprint of 10.08 million sq ft, having grown at a CAGR of 20.80% between FY23 and FY25. It added 2.83 million sq ft of area in the last two years.
The company’s revenue from operations rose from Rs 711 crore in FY23 to Rs 1,374 crore in FY25.
According to the RHP, 31.90% of rental revenue in FY25 came from multi-city clients.
In FY25, 19 clients occupying 5,931 seats terminated agreements with Smartworks without serving the notice period, a sharp rise from FY24, when seven clients occupying 1,058 seats did the same.
Smartworks has two centres in Singapore with a total area of 35,036 sq ft. It is present across Tier-1 and Tier-2 cities in India, including Bengaluru, Hyderabad, Chennai, Mumbai, and Pune.
The company has four leased centres in India exceeding 500,000 sq ft each, with the largest centre—approximately 700,000 sq ft—located in Vaishnavi Tech Park, Sarjapur, ORR, Bengaluru. As of March 31, the average centre size is 180,000 sq ft.
